Saab Signs Agreement for the Next Generation Fighter Aircraft Gripen E
and Receives Development Order

Defence and security company Saab has signed an agreement with the
Swedish Defence Materiel Administration (FMV) for Gripen E. The
agreement includes development and modification of Gripen E for Sweden
during the period 2013-2026 and a possible order for new production of
Gripen E from Switzerland. FMV has today placed an initial development
order of SEK 2.5 billion for operations during 2013-2014. Remaining
orders from Sweden are expected in 2013-2014. The total value of
possible orders under the agreement amounts to a total of SEK 47.2
billion.

The Swedish Parliament, has with a broad majority, decided that Sweden
will acquire Gripen E. The agreement signed leads to an initial delivery
of Gripen E to Sweden in 2018. The agreement with FMV includes several
parts. The first part, ordered today, relates to development of Gripen E
in 2013-2014 and is worth SEK 2.5 billion. The remaining parts of the
agreement include orders as follows:

Remaining development work for Gripen E to Sweden of SEK 10.6 billion
– expected in the first quarter 2013.

Modification of 60 Gripen C to Gripen E with first deliveries to
Sweden in 2018 – expected in the fourth quarter 2013 at the latest.

Mission-specific equipment and support and maintenance for Gripen E to
Sweden with initial deliveries in 2018 – expected in the fourth
quarter 2014 at the latest.

In Switzerland, a possible acquisition of 22 Gripen E is to be
processed in the parliament. The agreement therefore includes
provisions of delivery of 22 brand new Gripen E, and related equipment
to Switzerland, if Switzerland decides to acquire Gripen E.

All orders under the agreement, including a possible order from
Switzerland via FMV, amounts to a total value of approximately SEK 47.2
billion and will be booked when each order is received.

The agreement includes rights for FMV - conditional to certain
pre-requisites - to fully or partly make cancellations. If so, Saab has
the right to compensation for costs already taken and costs for
discontinuation. The agreement also includes sections regulating the
conditions should Switzerland decide not to acquire Gripen E.

“This is an historic event for Saab. We are proud to continue to deliver
a world-leading fighter aircraft to the Swedish Air Force. Gripen has
long been the backbone of the Swedish Air Force as well as for several
other countries. This next step also creates more opportunities in the
export market for many years to come. Our existing customers that
operate the Gripen C/D version will also be able to take advantage of
some of the development in their future upgrades,” says Saab’s President
and CEO Håkan Buskhe.

“We are now entering a development and test phase which will occupy many
of our existing employees. We also anticipate that we will need to
recruit. The production will take place in Sweden with suppliers from
several countries,” says Lennart Sindahl, Head of business area
Aeronautics, and adds:

“With this agreement we continue to develop the successful Gripen
concept with our own innovative and unique design as well as our own
software combined with sub-systems from different suppliers around the
world.”

Gripen E has a substantially developed capability compared to previous
versions. The aircraft is based on the same smart design and innovative
technological solutions, which leads to considerable savings compared to
other alternatives. Gripen E has a more powerful engine with the
capacity to operate for a longer duration and carry more weapons and
payload. New electronic radar, upgraded presentation systems in the
cockpit and modern avionics (aircraft electronics) enhances the ability
to perform successful missions. The technological steps that have been
taken with Gripen E have been proven in the Gripen 39-7 E/F demonstrator
program, where the test aircraft has flown more than 250 hours in
Sweden, the UK,India and Switzerland among others since 2008.

Through upgrading both hardware and software, Gripen E becomes a modern
system that is easy to further develop for the future.

Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has
operations and employees on all continents and constantly develops,
adapts and improves new technology to meet customers’ changing needs.

The information is that which Saab AB is required to declare by the
Securities Business Act and/or the Financial instruments Trading Act.
The information was submitted for publication on 15 February at 07.00
CET.